Overpricing isn't the best way to win people over if your competition offers better value. Forcing gamers to pay more than they believe they should is exactly why many will turn there head in the other direction facing the alternative options. Remember the PS3 vs the 360? Remember the PS2 vs the Dream Cast? remember the XB1 vs the PS4? Do you need a PS5 vs the XSX? Doesn't matter how good the games might be, the pricing is extremely important. Because if any company thinks majority will jump on board there product regardless of price balancing is surely to lose a lot of momentum and reputation. I don't believe Sony will overprice there console, I believe we are looking at a slightly more expensive PS5 compared to the PS4 and I feel the XSX will match it.

$550 for the disk model, $500 diskless. Calling it now.

Because the power of the CELL SSD!

599$ today is much less of a gut-punch than the PS3's launch price back in the day. For me, it won't be a huge issue due to two factors, the first being that I'm used to paying about 50% more than that for my GPU's alone and the second is the fact that I always wait a while before I buy new consoles due to wanting a bigger library, less trouble and a slightly lower price on peripherals and software.

Considering that I won't be getting any of the next gen consoles until at least 18 to 24 months after they come out, the launch price really means nothing to me. If it's 599 and people are willing to pay that much for a console then good for them. I won't bother until much later and after the price drops anyway.

You used correctly the term "value". It's the overall value proposition that determines how much a customer is willing to pay for a product and hardware specs are just a part of it.

Software is a key driver of value proposition and Sony showed they can offer both established popular series and new IPs from renowned studios that won't be avaliable anywere else. MS on the other hand has yet to demonstrate they can offer a comparable output of exclusive content both in terms of quantity and variety. That's why at the current status Sony's proposition has an advantage despite comparable specs.

Looking at past examples, if specs were the only key driver of value, Nintendo would have left the business a decade ago.

Customers dont always want to spend more just because a brand is pushing more features. Its like if these console makers added a coffee machine into the consoles, sure it adds value but the console will now be $699. Does that mean customers are okay with paying more? I wouldn't think so either. They will opt for the cheaper model hence why cheaper sells more.

All console brands have well established IPs that are proven. To say one company offers it while the others dont, is looking at the scenario blindly. Any IP can be turned around into a hit if the right talent is behind it.

I also wouldnt be underestimating Xbox Studios. They brought and aquired some good talented devs and even formed acouple internally. Masterpieces dont happen over night, infact Sony didnt really hit hard with good 1st party games until the PS3 era in my opinion.

If it costs more than $450 (disc version), I will have a hard time justifying a purchase before a price drop. While I would love to buy it early and start playing through all the PS4 games I missed, the PS5 games announced just don't do enough to get me hyped about that purchase. I don't feel compelled to make that purchase so I don't feel like I'm in any rush...

I would buy it, but it would not be ok in the grand scheme. Especially if the XSX is cheaper.

I agree with you at least on two points.

Yes, customers are not willing to spend more for just any additional feature. And the "coffee machine" example is actually on point, because I think it explains the difference between and PS3 situation and currrent situation. With the PS3 Sony acually tried to put a sort of "coffee machine" into the console; the main reason why the PS3 was so expensive was the BD player, an extra feature that no one asked for and didn't actually add anything to the gaming experience (despite Sony at the time tried to tell otherwise). This time Sony could ask for a premium but becasue they have an advantage in terms of software output capability (imo), something that players do care about.

I also agree with the last statement, it takes time to create masterpieces and Sony started to build its first party reputation mainly in the PS3 era. That's also the practical reason why MS will still be at disadvantage in terms of software for some time. Their recently bought studios may very well have "masterpieces" in the oven but it will take time for those games to hit the market and it will take even more time for them to build a reputation comparable to Sony's first party. It's not to diminish Xbox Studios but so far they have only 3 exclusive long running quality series (Halo, Gears Of War, Forza) other games have been hit and miss so far.